1. What, historically, have been Apple's competitive advantages?
* Bring easy-to-use computers to market.
* Sculley years (1985-1993), Apple targeted low cost computer and forge an alliance with IBM for OS development on Intel platform, both of which didn’t bear any results.
* Spindler‘s (‘93-‘96) strategy to expand to international market gave short-term results
* Amelio (‘96-’97) decided to go back to premium price differentiation strategy
* Steve jobs restructured company around the original strategy of Apple and turn that into a competitive advantage.
* Apple’s competitive advantages are:
* Control of software and hardware
* Marketing
* digital asset management,
* retail strategy,
* Apple has always had a proprietary design.
* product differentiation: industrial design, elegance, product loyalty (coolness)
* Synergy to use on all products (plug and play, entrertaiment hub)
* Steve Jobs’s strategical decisions.
2. Is the PC industry a strategically distinct industry? Why or why not?
* Moore’s Law: that the performance and capacity of an integrated circuit would double approximately every two years.
* his led to decrease in R&D spending. Hence almost all PC suppliers used cost differentiations as their strategy and sell to volume. The consumers are also very cost conscious and need value for money.
* The product life cycle is short
Analyze the PC industry, and evaluate its attractiveness using Porter’s Five Forces analysis. Is there a sixth force? Ifyes, what could we call that force? What is your conclusion about how good of a business is the PC industry?
6th force: new entrant
Industry: include PC manufacturers like Dell and Apple, suppliers of semiconductor chips like Intel and Micron, suppliers of disc drives like Seagate, suppliers of software such as Microsoft, etc.
Substitudes: Netbooks, Ultrabooks, tablets, smartphones
Market:...